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You buy an 8% coupon bond that pays coupons semi-annually. Keep in mind the coupon rate is quoted as an annual rate). Annual interest rates

You buy an 8% coupon bond that pays coupons semi-annually. Keep in mind the coupon rate is quoted as an annual rate). Annual interest rates are 10% and there will be semi-annual compounding due to the semi-annual payments. The bond matures 10 years from now and has a par value of $1,000.What is the value of this bond? (Round to the nearest dollar or so.) Answer A:$805 B:$924 C:$775 D:$875

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